Trump tariffs and extreme weather could send home insurance costs soaring
Homeowners in disaster-prone states face potentially steep insurance hikes as new tariffs and climate-driven destruction push the market toward crisis.
Kiley Price reports for Inside Climate News.
In short:
- Home insurance rates are projected to rise 8% nationwide in 2025, with sharper hikes in climate-vulnerable states like Louisiana, California, and Florida.
- President Trump’s new tariffs on building materials like lumber and steel are increasing reconstruction costs, which insurers may pass to consumers as higher premiums.
- Labor shortages from immigration crackdowns, combined with delayed regulatory approval for rate increases, are straining insurers and may lead to insolvencies or market exits.
Key quote:
“I just think that this is so important for people to be made aware that insurance rates are going up, and insurance makes the economy go and this is the tangible result of a changing climate.”
— Andrew Hoffman, professor of sustainable enterprise at the University of Michigan
Why this matters:
The cost of homeowners insurance is no longer just a line item in the household budget; it’s becoming a barometer of America’s growing climate crisis. As fires torch the West, hurricanes batter the Gulf, and floods inundate the Midwest, insurers are walking away from policies they once considered safe bets. In some states, premiums have doubled or tripled, while others are seeing major providers pull out entirely. Add to that a jump in tariffs on essential building materials, and the price of rebuilding after a disaster becomes even steeper. These shifts don’t just pinch homeowners — they threaten the financial scaffolding of entire communities.
Learn more: Rising insurance costs leave more homeowners uninsured
